The city of New York recently faced an unexpected financial challenge when the Department of Homeland Security (DHS) withdrew $80 million in federal funds on February 12. City officials became aware of the situation only after noticing the funds were missing from city accounts.
In a social media announcement on February 13, DHS Secretary Kristi Noem explained that the funds were retracted to penalize New York City for allegedly misusing FEMA resources by housing undocumented migrants at the Roosevelt Hotel.
“I have clawed back the full payment that FEMA deep state activists unilaterally gave to NYC migrant hotels,” Noem stated. “FEMA was funding the Roosevelt Hotel that serves as a Tren de Aragua base of operations and was used to house Laken Riley’s killer.”
However, the claims made by Noem do not align entirely with the facts. The $80 million was received by New York City in late January as part of the Shelter and Services Program, a grant established by Congress to reimburse local governments for providing assistance to migrants. Although FEMA administers this program, the funds are allocated from a distinct section of the federal budget.
Through the Shelter and Services Program, New York City delivered authorized services to migrants, subsequently receiving federal funds to cover these expenses.
New York City Comptroller Brad Lander expressed his confusion over Noem’s actions during an interview with MSNBC’s Chris Hayes.
“They gave us this money and Congress authorized it,” Lander remarked. “We sent them an invoice detailing all the expenses … they sent us the money and approved the invoice. But lo and behold, they yanked it right back. It is highway robbery.”
This incident marks the first occasion that the Trump administration has recalled federal funds that were previously distributed. The payment was considered probationary, yet Lander described the revocation as “unprecedented.”
Noem’s assertions regarding the Roosevelt Hotel appear questionable. Republicans, including President Donald Trump, have repeatedly portrayed the city’s use of the hotel for migrant accommodation as an instance of “illegals” receiving “luxury accommodations.” The hotel, which is a century old, shut its doors in 2020 and reopened in 2023 specifically to provide migrants with access to case workers, essential medical care, and temporary lodging.
In recent weeks, New York City has become a focal point for the Trump administration. Allegations have surfaced suggesting the White House pressured federal prosecutors to dismiss criminal charges against Mayor Eric Adams in return for his cooperation with mass deportation efforts. Both Mayor Adams and the White House have denied these claims.
The Adams administration responded by filing a lawsuit against the federal government over the withdrawn funds on February 15. Meanwhile, Landers is challenging Adams in the upcoming 2025 New York City mayoral election.
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